New York state's top banking regulator Benjamin Lawsky wants BNP Paribas SA to dismiss its chief operating officer as part of a settlement with the U.S. over alleged sanctions violations.

New York state's top banking regulator Benjamin Lawsky is calling on BNP Paribas SA to dismiss one its top executives as part of settlement with the U.S. over alleged sanctions violations.

New York's top banking regulator Benjamin Lawsky is pressing BNP Paribas SA to dismiss one its top executives as part of settlement negotiations with the U.S. over alleged sanctions violations, according to a person familiar with the matter.

Mr. Lawsky wants the bank to remove Chief Operating Officer Georges Chodron de Courcel, said the person, who asked not to be identified because the discussions are private. Mr. Lawsky is also seeking the departure of another senior executive and about 12 other bank employees, the person added. Chodron de Courcel and the others haven't been accused of wrongdoing.

U.S. authorities are said to be seeking as much as $10 billion—a record criminal penalty—over BNP's dealings in sanctioned countries including Sudan and Iran. Lawsky has said that individuals, not just companies, must be held accountable to deter future wrongdoing. He also wants to suspend BNP's dollar-clearing operations in New York, which has become a sticking point in the negotiations, a person familiar with the matter has said.

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Chodron de Courcel, 64, is one of three chief operating officers at the bank and has overseen corporate and investment banking for more than a decade. He is also the chairman of BNP's Geneva-based unit, which has been a focus of the investigation, people familiar with the matter have said. Chodron's term as COO expires in the spring of 2016 at the latest, according to BNP's statute. The board of directors can remove a COO at any time, according to the statute.

Bertrand Cizeau, a spokesman for BNP, declined to comment or to make Chodron de Courcel available for comment. Caitlin Ferrell, a spokeswoman for Mr. Lawsky, also declined to comment.